[Federal Register Volume 63, Number 203 (Wednesday, October 21, 1998)]
[Notices]
[Pages 56280-56281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28194]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40549; File No. SR-NSCC-98-11]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of a Proposed Rule Change to Modify 
NSCC's Rules Regarding Its Mutual Fund Services Transfer Service

October 14, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ notice is hereby given that on July 30, 1998, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change (File No. SR-NSCC-98-11) as described in Items I, II, and III 
below, which items have been prepared primarily by NSCC. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change will modify NSCC's procedures regarding 
its Mutual Fund Services transfer service.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NSCC included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. NSCC has prepared summaries, set forth in sections 
(A),(B), and (C) below, of the most significant aspects of such 
statements.\2\
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    \2\ The Commission has modified the text of the summaries 
submitted by NSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The proposed rule change will modify NSCC's rules regarding its 
Mutual Fund Services transfer service. The Mutual Fund Services 
transfer service enables fund members and mutual fund processors to 
transfer between each other the value of Fund/Serv eligible mutual fund 
shares or UIT units on an automated basis.
    The proposed rule change will enable NSCC to implement a request by 
a users

[[Page 56281]]

advisory group to modify Section 21(c) of NSCC's Rule 52A so that the 
time frame between a delivering fund member's acknowledgment and 
confirmation is shortened thereby permitting ore expeditious transfers. 
Currently, a delivering fund member that has acknowledged a transfer 
request must confirm the value of the Fund/SERV eligible mutual fund 
shares or UIT units to be transferred by submitting a confirmation to 
NSCC no earlier than two days and no later than sixty business days 
after the submission of an acknowledgment. The proposed rule change 
will permit the delivering fund member to submit a confirmation no 
earlier than one day and, as is the case today, no later than sixty 
business days after the submission of an acknowledgment. The users 
advisory group has informed NSCC that a one day time frame is 
sufficient for the submission of a confirmation. NSCC will notify 
members by Important Notice of the specific implementation date, which 
is expected to be in December 1998.
    NSCC believes that the proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder since 
it will facilitate the prompt and accurate clearance and settlement of 
securities transactions and, in general, will protect investors and the 
public interest.

(B) Self-Regulatory Organization's Statement of Burden on Competition

    NSCC does not believe that the proposed rule change will have an 
impact on or impose a burden on competition.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants, or Others

    No written comments relating to the proposed rule change have been 
solicited or received. NSCC will notify the Commission of any written 
comments received by NSCC.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Acting

    Within thirty-five days of the date of publication of this notice 
in the Federal Register within such longer period (i) as the Commission 
may designate up to ninety days of such date if it finds such longer 
period to be appropriate and publishes its reasons for so findings or 
(ii) as to which the NSCC consents, the Commission will:
    (A) by order approve such proposed rule change or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing including whether the proposed rule 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for inspection and copying in the 
Commission's Public Reference Room, 450 Fifth Street, NW., Washington, 
DC 20549. Copies of such filing will also be available for inspection 
and copying at the principal office of NSCC. All submissions should 
refer to the file number SR-NSCC-98-11 and should be submitted by 
November 12, 1998.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority. \3\
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    \3\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-28194 Filed 10-20-98; 8:45 am]
BILLING CODE 8010-01-M